Warner Bros. Discovery-Netflix Merger: A Fair Arb Return If You Are Patient [Seeking Alpha]
Warner Bros. Discovery, Inc. - Series A (WBD)
Company Research
Source: Seeking Alpha
Warner Bros. Discovery shareholders receive $23.25 cash, $4.50 in Netflix stock (collared), and a Discovery Global spinoff with my estimated value of $6.20 per share. Netflix stock post-merger will have an EV/EBITDA multiple of 29.5. The PEG ratio is comparable to other mega-cap Communications stocks; Netflix is rated Hold around $100. Deal risks include regulatory approval and timeline, and upside is capped except for Netflix stock outperformance or higher Discovery Global valuation. The high break fees of $5.8 billion for Netflix or $2.8 billion for WBD indicate strong management confidence in completing the deal. DutcherAerials/iStock Unreleased via Getty Images Value Is Realized Over Time It's been a tough road for Warner Bros. Discovery, Inc. ( WBD ) since its spinoff from AT&T ( T ) in April 2022. Starting from a price of $24.47 at the This article was written by Analyst's Disclosure: I/we have a beneficial long position in the shares of WBD either through stock
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WBD
News
- Old Hollywood meets new: Netflix agrees to buy Warner Bros. and HBO Max [MSNBC.com]MSNBC.com
- Netflix investors don't seem to like its blockbuster deal with Warner Bros. Discovery [Yahoo! Finance]Yahoo! Finance
- S&P/TSX composite closes the week lower, while U.S. stock markets rise [Investment Executive - News]Investment Executive - News
- S&P/TSX composite closes the week lower, while U.S. stock markets rise [Advisor.ca (Canada)]Advisor.ca
- Hollywood, already on shaky economic ground, shudders at the prospect of a mega-Netflix [CNN]CNN
WBD
Earnings
- 11/6/25 - Miss
WBD
Sec Filings
- 12/5/25 - Form 425
- 12/5/25 - Form 425
- 12/5/25 - Form 8-K
- WBD's page on the SEC website